Insider Buying: Warwick Sauer Just Spent AU$279k On Excelsior Capital Limited (ASX:ECL) Shares

Potential Excelsior Capital Limited (ASX:ECL) shareholders may wish to note that insider Warwick Sauer recently bought AU$279k worth of stock, paying AU$1.52 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 31%.

View our latest analysis for Excelsior Capital

Excelsior Capital Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Director Leanne Catelan for AU$885k worth of shares, at about AU$1.28 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$1.46. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Excelsior Capital insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 2.22m shares for AU$2.9m. On the other hand they divested 70.00k shares, for AU$92k. Overall, Excelsior Capital insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Excelsior Capital is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Excelsior Capital

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Excelsior Capital insiders own 61% of the company, worth about AU$26m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Excelsior Capital Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Excelsior Capital. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Excelsior Capital. Be aware that Excelsior Capital is showing 3 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

Of course Excelsior Capital may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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